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Business Studies Coursework Assignment on Ethics and ROI

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Business Studies Coursework Assignment on Ethics and ROI

  • Peer Discussion – Kimberly

    To place a preferred employee in a position to obtain a higher ROI as compared to other employees is not only unfair but unethical. It shows favoritism. Deliberately places someone in a place to outperform another candidate is to be avoided because not only is it wrong but can bring about legal ramifications for the entire company.” Freeman’s theory changes the relationships between the corporation and its stakeholders to one that is managed with the purpose of making all stakeholders equal.” (Robin, 2009). “This action is making the company liable due to the unethical behavior of one division manager.

    The ethics of not bringing the measure of ROI with the investment defined as net book value to the attention of management. Net book value is defined as the value of an asset minus the depreciation and this ROI is not considering the NBV is unethical and does not present an accurate overall picture.

    My ROI to my current employees is exceeding by the value of my work paired with customer satisfaction. The ROI can be measure by the amount of additional services customers obtain and no cancellations among my accounts managed.

    I can continue to enhance my skill to bring about a higher performance as considered by the metrics measured in my job. By furthering my education, I am adding value to myself for the company I work for. I will take the information and skills I am learning now to enhance my career with skills that can be used in my current department of moved to another within the same company. My resume reflection my r=experience, pursuit of knowledge and commitment to my employer.

    Robin, D. (2009). Toward an applied meaning for ethics in business. Journal of Business Ethics, 89(1), 139–150.

    Peer Discussion –Matthew

    Ethics are moral principles that can guide the decision-making of an individual, and at times the lines can get blurred leading to poor judgment. While it is essential for top executives to set ethical examples, it is just as vital for employees to set and maintain ethical behavior in the workplace (Quinlan, 2018). All members of an organization have a responsibly to be ethical at all times, and in doing so, trust is established between the members. There will always be relationships in the workplace that are further along than others. In this case, it is not ethical for me to place a favorite person in a position where she appears to be a great manager based on the low net book value and high ROI. If manager performance is only determined by utilizing ROI and net book value then it is easy to favor one employee over another. Not only is this unfair, but it is highly unethical to position one manager to succeed based on having a better relationship with them. Several factors influence the performance of a department manager. If the company neglects these factors in favor of utilizing only the ROI measure, then they are not placing the managers on an even playing field. The manager of the older division is in charge of a division that has depreciated over several years leading to lower net book value and a higher ROI. Since we measure performance based on ROI, the managers of the newer divisions are at a significant disadvantage and could be at risk of losing their job. Business ethics requires us to protect our employees from unethical practices, and in this case by disregarding this responsibility I am not treating the situation fairly or ethically (Robin, 2009).
    The management should be aware of how the measure of ROI with the investment defined as net book value is an unfair way to evaluate the department managers. It is essential that management understand that performance cannot be solely determined based on net book value and ROI. Return on investment is a good measure of performance for the company, but by not accounting for other factors in a mangers performance the company is practicing unethically. Not bring this to the attention of the management would be unethical on my part and I would be contributing to the unfair performance measure. Robin (2009), states that the field of business ethics has yet to agree upon a general set of ethics for this discipline. Creating a fair environment where all employees have the opportunity to thrive would be a step in the right direction for establishing a set of business ethics. It is vital for the company to examine other factors that can influence the performance of the manager, and by doing this, the performance of the team as a whole can be observed. If I were to conceal this unfair measure of performance, I would not be doing my ethical duty as the division manager, and would not be allowing employees to thrive in the workplace.

    Robin, D. (2009). Toward an applied meaning for ethics in business. Journal of Business Ethics, 89(1), 139–150.


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